The purpose of this assignment is to help students understand how financial ratios are calculated and present this information in an analytical manner. In addition to demonstrating how the ratio is calculated, each student should be able to explain two types of significance: forensic$/$financial health and strategic importance to the firm.

$1.$ Executive Summary: $\mathrm{.}75$ to $1\mathrm{.}0$ page

$2.5-6$ sentence paragraph on the forensic$/$financial health of the company

Using this information $-$ The first ratio we chose to analyze was the Return on assets $($ROA$).$ ROA is a measurement of how efficiently a company is using its assets. It is calculated using the following equation, ROA $=$ Net Income $/$ Total Assets. The ROA for $3$M was calculated below:

Year Net Income $($millions$)$ Total Assets $($millions$)$ ROA

$2021$ $$5,921$ $$47,28312\mathrm{.}52\%$

$2022$ $$5,803$ $$45,84912\mathrm{.}65\%$

$2023$ $$5,683$ $$46,18812\mathrm{.}31\%$

The second ratio we chose was the Current Ratio. The Current Ratio is a measure of a company$$s ability to pay off its short$-$term liabilities with its short$-$term assets. It is calculated using the following equation, Current Ratio $=$ Current Assets $/$ Current Liabilities. The Current Ratio for $3$M is calculated below.

Year Current Assets $($millions$)$ Current Liabilities $($millions$)$ Current Ratio

$2021$ $$10,925$ $$7,5361\mathrm{.}45$

$2022$ $$10,450$ $$7,2721\mathrm{.}44$

$2023$ $$10,765$ $$7,4231\mathrm{.}45$